The central problem with Obamacare, and Romney care from which it is based, is the fact that neither do anything to cut out of control health care costs. Contrary to what we were told, rates continues to skyrocket here in MA, where my plan is currently being cancelled for unknown reasons, forcing me to either pay more for less or less for a lot less. Awesome. As my rates recently went up $50 a month, an outrageous sum flying in the face of "low" inflation, this means everyone's rates are going to go up as well. How is that saving us anything at this point?
Health care is NOT a supply and demand commodity. You are forced to buy whatever your doctor prescribes because most of us do not know any better. And if that pill costs thousands per month, you'll find some sort of way to pay for it, especially if your life is at stake. Thus we still have record breaking bankruptcies happening each month as unpayable bills stack up for those who actually have insurance. All we've done is subsidize huge rates on the back of the taxpayer who now have to cover insurance rates that are going up at an astronomical pace. Our health care system needs to be taken out of private hands and nationalized immediately. No more Big Pharma. No more private health insurance as a primary source. We need to start looking at how countries like Sweden, Denmark, and Japan run their health care systems which are cheaper, and far superior to ours. If we don't and keep telling ourselves that government can't do anything, trust me, private companies are even worse. How well did a private company, Federal CGI, do with all of this? Not well.
And because of the utter failure of Obamacare at this point, caused almost entirely by the President and his staff with a huge assist from the GOP, Aetna CEO Mark Bertolini said that as the young and/or healthy uninsured have not signed up for the program, the company may be forced out of the health exchange program. This is telling as if this happens, expect a domino effect in which many, if not all, of the companies follow suit. And then rates will rise beyond what anyone can afford. What then government? As Congress can't agree on what color the sky is, bold moves desperately needed to fix decades of Republican nonsense and corporate malfeasance are not coming any time soon. What may be coming soon is a total collapse.
Recently I wrote about how the Chinese may be ready to crumble as one of their largest banks appears to be headed for insolvency. This may be one of the reasons Germany wants its gold stocks held in the US back. So far, the US has refused. Of the 1500 tons we have, we gave them five tons back. Many are speculating that the reason for this is that we spent all of it. What also is happening, as some one who writes about the gold market for a living knows, Asia is buying up gold like it's, well, gold. Here's Dr. Paul Craig Roberts take on this whole thing:
"The reason is: the ability to supply large amounts of gold to the bullion dealers to sell has diminished with the supply of gold and silver. What the Fed did was turn to massive ‘naked shorts’ of gold futures contracts. They don’t have the real gold . . . so they come in and dump contracts, say in a period of 6 minutes, that are three times the amount of gold COMEX has to make delivery. . . . So, it drives down the price of gold. That’s how they got the price down from $1,900 to $1,250.”
"The point is the ability to continue selling these ‘naked shorts’ is now disappearing because there is no gold left to back them up… None of these EFT’s has the gold to back the shares. The ability to continue looting them in order to make good on gold deliveries is running out. So, this will prevent the Fed from selling ‘naked shorts’ to protect the dollar from its policy of quantitative easing. That’s what’s it’s all about. You can’t print $1,000 billion new dollars every year without causing other holders of dollars to wonder about the value of the money and to seek a way of getting out of it. China has been doing that by going into gold.”
"I think, this year, you are going to see a further downturn in the economy. The signs are not only that we do not have a recovery, but it’s going to get worse… Christmas sales were very negative. There’s no growth in people’s income and no jobs. So, if the economy goes down further, what does that mean? It means the deficit widens. It means they have a greater debt ceiling lift. They have to have a bigger debt ceiling increase, and all of this will alarm the world. They’ll say, good heavens, they already had a trillion dollar deficit. Now it’s gone up, and the Fed can’t stop the quantitative easing without the stock and bond market collapsing. The banks’ solvency will become an issue. So, the world is watching a bigger deficit, more printing of money, and they are likely to start dumping dollars. When they do that, they’ll say ‘gold, I want gold.’ There’s not much supply to meet demand, and the price has to escalate. So, I wouldn’t be surprised if that shows up this year.”
While this is going on, huge bets on the derivative market keep appearing as well, meaning as they know the price is going to go down, they can bet huge and win knowing the outcome is assured. It is also why the derivative market has a $800 trillion to $1.2 quadrillion loss ratio. If I know the roulette wheel is always going to stop on a number I already know, I can break the bank on a regular basis. It is the exact same thing going on now and sooner or later, the casino is going to go bust and take us all down with it. Anyone with physical gold, not worthless paper stocks, could make a killing in future months once this scam gets outed and gold rises exponentially. Buy gold now, trust me, it's a good investment, particularly gold coins which can add extra value.
Without a stronger middle class which would require a near doubling of the average salary at this point, the economy cannot continue. Even worse, recent studies say as many as 70% of all jobs will be obsolete over the next twenty years. As populations will continue to grow, this means a total collapse of our economy, and the world's, as capitalism will fail under this brave new world. Someone had better come up with a new economic theory soon because these old, outdated models are failing and soon there will not be enough jobs for anyone.
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